2 great value ASX shares I’d buy in a heartbeat

I think these 2 ASX shares are good value. I’d buy them in a heartbeat, including plus-size fashion share City Chic Collective Ltd (ASX:CCX).
The post 2 great value ASX shares I’d buy in a heartbeat appeared first on Motley Fool Australia. –

buy and hold

I think there are some great ASX shares out there that are worth buying in a heartbeat.

Some tech shares like Altium Limited (ASX: ALU) and Pro Medicus Limited (ASX: PME) are great businesses, but I think the market fully understands the potential – that’s why they trade on such a high price/earnings ratio.

However, there are some ASX shares that still look really good value to me:

City Chic Collective Ltd (ASX: CCX)

City Chic is a plus-size fashion retailer of clothes, footwear and accessories.

The City Chic share price dropped 6.5% yesterday and it has actually fallen by 29% since 18 August 2020.

The company has been losing investor sentiment since it said that it hadn’t won the Catherines auction. Catherines was a US retailer that was in financial trouble and was sold to a prospective buyer.

Whilst it was disappointing that the ASX share didn’t win the auction. I think there’s a couple of things to think about the failed bid. I think it was a good sign that City Chic didn’t want to overpay – it shows that management respect shareholder capital.

The other thing to remember is that the company still sees other opportunities to add to its collective and take more market share. City Chic could soon put that money from the capital raising to work, sooner than expected.

But it’s the organic growth I’m most excited about with this ASX share. City Chic sells a good proportion of its products to the northern hemisphere, which is a huge market. It also sells a lot of products online. Those are attractive attributes about the ASX share in my opinion.

At the current City Chic share price it’s valued at 17x FY23’s estimated earnings.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current describes itself as a global multi-boutique asset management business committed to partnering with exceptional investment managers. It combines capital with strategic business development to help businesses grow.

Pacific is invested in a number of interesting fund managers. Some of them are growing very well. For example, in FY20, fund manager GQG grew its funds under management (FUM) by 78% in one year from US$25.1 billion to US$44.6 billion.

Indeed, Pacific’s FUM has been growing strongly recently. In FY20, excluding investments sold and acquired, Pacific’s FUM grew by 52% to $93.3 billion.

That FUM growth and asset gathering efforts was impacted by COVID-19. This ASX share has a lot of growth potential. In FY20 alone it grew its underlying earnings per share (EPS) by 18%.

Pacific thinks its boutiques are well positioned to secure new commitments from investors in FY21 as institutional investor activity resumes. Not only that, but the company thinks it will be able to deploy capital into new, diversifying investments in FY21.

I think there is a lot to like about this ASX as its underlying earnings could compound nicely over the next few years.

At the current Pacific share price it’s valued at 9x FY23’s estimated earnings. It also offers a grossed-up dividend yield of 8.1%.

Foolish takeaway

I think both of these ASX shares look really good value when you just look ahead a couple of years. City Chic is continuing on its path to becoming a global leader in plus-size fashion, so I think it’s worth being along for the ride.

Pacific has had a volatile history. But I think it’s on a good path now and continues to see strong underlying growth. I think it can offer exposure to the theme of people looking for return (from fund managers) in a world of low interest rates. I believe Pacific is a solid option for total returns.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 great value ASX shares I’d buy in a heartbeat appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!